Gen Gives Y Thanks: Taking care of debt pays off

Gen Y didn't just rack up debt, they are paying it
off and are thankful for the lessons learned.
(Photo: Photoxpress.com)

Generation Y has been dubbed Generation Debt. MSN Money correspondant, Emma Johnson, reports the media credit card debt of low- and middle-income people aged 18 to 34 is $8,200 and the average college debt for recent grads is more than $20,000 and rising.

While these statistics are staggering in and of themselves, an interview with a clueless member of Generation Y usually gets thrown into the report.  (You know, the girl who doesn't see any problems with her spending habits or a guy full of remorse after completely hitting rock bottom.  For two truly groan-inducing examples, watch this clip from "60 Minutes"). These kinds of illustrations are painful for anyone, regardless of age, to watch.

Yes, Generation Y has debt, but not everyone is clueless. Gen Y’rs like 26-year old Rachel Yeomans of Chicago are grateful for the wake-up call the poor economy has provided.

“For me, the economy has resulted in fear and frustration. Fear that I may get laid off from my lucrative project management position and frustration that I would be completely stranded if that happened because of my own doings. I didn't have a budget, I had credit card debt and there was absolutely no excuse for either scenario. It's been published many times that Generation Y is an extremely selfish and spoiled generation. I couldn't agree more because I fall perfectly into that niche. I was very lucky growing up, I didn't want for anything. Then I grew up and thought that I deserved continuing along that same path. Selfish? Yes. Short-lived? Oh yes.”

Yeomans used this wake-up call to take control of her time outside of work at McGraw-Hill and pursue other ideas, including consultant work and launching her online endeavor, The Working Wardrobe. It’s starting to pay off.

“I am eternally grateful for this wake-up call because who knows when else I would have received it. Instead of whining about the fear of losing my job and turning bitter, I have gotten educated on industry trends and job necessities and pursued other employment endeavors that have been swirling in the back of my mind for quite some time. And to my delight and surprise, those endeavors have blossomed into very exciting opportunities. Those opportunities may not come to fruition for at least three to five years, if at all, but the initiative to grow up and get to work is represented in them. I now know that despite anything that may happen and whether I am prepared for it or not, I will make the most of it and be grateful for the innumerable positives in my life, which by far outweigh the negatives.”

Like Yeomans, 25-year old Adam Baker took action when he saw his financial situation. He and his wife Courtney even resorted to drastic measures—selling possessions and moving. Now he is a freelance writer, professional blogger (his story of triumphing over debt can be read on his wildly popular blog, Man Vs. Debt) and online entrepreneur. He is grateful not only for what he and his family accomplished, but what they learned.

“In June, after over a year of selling our possessions, paying off debt, and building savings we set off for Cairns, Australia, with only what we could carry on our backs. Our quest for a job took us down Australia's east coast and eventually on a plane to Auckland, New Zealand. We now have that job and have a LOT to be thankful for. In this last year, we've come to the realization that there is much more to life than the traditional rat race. We've grown in our awareness of cultures outside the U.S. and have had a crash course in being flexible and adapting on the run. We are learning more and more everyday that life is about your day-to-day experiences and not necessarily your possessions or your bank account.”

Members of Generation Y, like Yeomans and Baker, are not just taking less than favorable circumstances and turning them around, they are grateful for the chance to learn these valuable lessons.  

For more on “Gen Y Gives Thanks”: Click here to read how the series got started and here to read all “Gen Y Gives Thanks” related articles. Join the #GenYGivesThanks conversation on Twitter and check out what the participants in the series are tweeting about with my GenYGivesThanks Twitter list.